EUR/USD: Bulls once again run into 1.0665 resistance, Fed eyed

Dhwani Mehta FXStreet

The EUR/USD pair extends its recovery mode into the European session, as the offered tone behind the greenback keeps growing bigger amid tumbling US treasury yields.

EUR/USD: Will the recovery last?

Currently, EUR/USD trades +0.29% higher at 1.0657, having posted fresh daily highs at 1.0665, finally surpassing hourly 200-SMA located at 1.0662. The EUR/USD squeeze gained traction in the European session, despite a rally in the European stocks, as the spot closely tracks the broad USD price-action in the lead up to the key risk event for the month, the FOMC interest rate decision.

However, the renewed uptick lost steam as the bulls once again ran into the key resistance placed around 1.0665 region, the confluence of hourly 200-SMA, previous high and daily S1.

All eyes now remain on the Fed verdict for fresh take on the spot, in the meantime the US retail sales, PPI and industrial production data will keep the traders busy.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0662/65/68 (1h 200-SMA/ daily high/ Dec 13 high). A break beyond the last, doors will open for a test of 1.0700 (round figure) and from there to 1.0730 (daily S3). On the flip side, the immediate support is placed at 1.0628 (20-DMA) below which 1.0600 (zero figure/ 5-DMA) and 1.0567 (Nov 18 low) could be tested.

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1. R3 1.0722
2. R2 1.0695
3. R1 1.0658
PP 1.0631
1. S1 1.0593
2. S2 1.0566
3. S3 1.0529

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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